Renting an apartment through a third-party guarantor service always felt a bit strange to me. You pay an extra non-refundable fee upfront, and in exchange, the landlord stops asking for endless proof of income because someone else agreed to cover the rent if you default on payments.
Lending protocols have always done the exact opposite. They act like anxious landlords watching your balance sheet every single block, waiting for a brief price wick so keeper bots can instantly seize your collateral for a liquidation penalty. TermMax splitting debt into FT, XT, and GT seems like an attempt to replace that constant surveillance with an upfront backstop.
When someone mints XT for one-click leverage, they aren't looping collateral through complex flash loans. The lender receives fixed yield via FT, while the GT holder pockets an upfront premium to absorb the shortfall if the position goes underwater before the loan expires. The smart contract only verifies token minting, locked collateral, and final expiration settlement. It does not enforce liquidation thresholds along the way because the borrower cannot be liquidated midway.
You avoid getting hunted by MEV bots during sudden flash crashes, but you push that entire burden onto whether the GT market accurately prices catastrophic drawdowns. I still wonder what happens to guarantor liquidity when the market turns ugly and nobody wants to underwrite open leverage positions anymore.
#termmax @TermMax $ONG $BB $ENA
Lending protocols have always done the exact opposite. They act like anxious landlords watching your balance sheet every single block, waiting for a brief price wick so keeper bots can instantly seize your collateral for a liquidation penalty. TermMax splitting debt into FT, XT, and GT seems like an attempt to replace that constant surveillance with an upfront backstop.
When someone mints XT for one-click leverage, they aren't looping collateral through complex flash loans. The lender receives fixed yield via FT, while the GT holder pockets an upfront premium to absorb the shortfall if the position goes underwater before the loan expires. The smart contract only verifies token minting, locked collateral, and final expiration settlement. It does not enforce liquidation thresholds along the way because the borrower cannot be liquidated midway.
You avoid getting hunted by MEV bots during sudden flash crashes, but you push that entire burden onto whether the GT market accurately prices catastrophic drawdowns. I still wonder what happens to guarantor liquidity when the market turns ugly and nobody wants to underwrite open leverage positions anymore.
#termmax @TermMax $ONG $BB $ENA